Amount of Income
For a cash basis taxpayer, the measure of income is generally the amount of money or fair market value of property received. For an accrual basis taxpayer, it is the amount the taxpayer has a right to receive.
Certain specific rules apply, including:
- Constructive receipt,
- Deferral of income from advance payment for goods or services (with exceptions),
- Determination what portion of an annuity is income and what is return of capital,
The value of goods or services received is included in income in barter transactions.
Read more about this topic: Gross Income
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—Henry David Thoreau (1817–1862)
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“Strictly speaking, every citizen above a certain level of income is guilty of some offense.”
—Max Frisch (1911–1991)